Evergrande warned of a possible default and the Chinese government summoned the head of the real estate giant on the brink of bankruptcy

Plaque at the headquarters of the China Evergrande Center in Hong Kong, China. EFE / EPA / JEROME FAVRE (JEROME FAVRE /)

The indebted property developer China Evergrande has received a lawsuit under a $ 260 million guarantee obligation, the company said on Friday, adding that it may be unable to pay due to a liquidity crisis. that has taken over the real estate sector of the Asian country.

Payback dates under other agreements can go ahead if you can’t meet the obligationthe company warned in a presentation to the Hong Kong stock exchange.

Evergrande, once the best-selling property developer in China, has already has stopped paying coupons totaling $ 82.5 million expiring on November 6, while stumbling from term to term and dealing with more than $ 300 billion in liabilities.

FILE PHOTO: The logo of the China Evergrande group at its headquarters in Shenzhen, Guangdong province, China, on Sept. 26, 2021. REUTERS / Aly Song
FILE PHOTO: The logo of the China Evergrande group at its headquarters in Shenzhen, Guangdong province, China, on Sept. 26, 2021. REUTERS / Aly Song (ALY SONG /)

His statement on Friday prompted the government of southern China’s Guangdong Province, where the company is based, to summon Evergrande Chairman Hui Ka Yan.

The Guangdong government said that, at Evergrande’s request, it would send a task force to the company to supervise risk management, strengthen internal controls and maintain normal operations.

Evergrande announced this Friday that it planned actively engage with creditors to develop a plan to deal with your debts abroad.

The promoter said that there were no guarantees that he had sufficient funds to continue meeting your financial obligations.

Evergrande Group President Hui Ka Yan.  Evergreen
Evergrande Group President Hui Ka Yan. EVERGRANDE (EVERGRANDE /)

Evergande founder Xu Jiayin recently sold 9% of his shares in the company for $ 344 million in a fresh attempt to gain liquidity. to face the obligations of the firm, local media reported.

Xu sold 1.2 trillion Evergrande shares at an average price of HK $ 2.23 ($ 0.29) on the Hong Kong Stock Exchange. last week, according to the private digital daily Caixin.

It is, said the newspaper, the the first time that the executive reduces his stake in the company since it began trading in 2009.

(With information from EFE)

KEEP READING:

What is Evergrande, the Chinese giant that is causing nervousness in international markets

Five keys to the fall of Evergrande and why it could generate a crisis like the Lehman Brothers

Why Evergrande won’t be another Lehman Brothers

Source-www.infobae.com